Posts Tagged "commercialization"

The manufacturing phase of product development poses unique hurdles, no matter if you are a first time hardware startup or you are a well-known corporation. Most recently and notably, Tesla Inc. CEO, Elon Musk, warned of the production challenges that still lie ahead for the Model 3. No company is immune to production challenges. Whether you have decided to manufacture locally or internationally, you are bound to face one or two hiccups before your product is ready to hit store shelves.

Before you dive into the manufacturing phase, we have compiled four of our top manufacturing and commercialization related articles for you. These articles touch on everything from “what to expect from a manufacturing partner” to “how to design for manufacturing from the start”.

“Developing a product is exhilarating, however when the time comes to start the manufacturing phase of the product development process, many entrepreneurs aren’t exactly sure where to begin. Here are some pieces of advice that every hardware startup should know about the manufacturing process.”

“Often times inventors and entrepreneurs are viewed as people who lock themselves away to develop an idea, but the truth of the matter is, it takes help from a wide range of people to get an idea on the road to commercialization. Don’t be afraid to reach out and ask for help. If you need a certain skill set that you don’t possess, find someone who does—asking for help might just be the thing that sets your idea on the path to success.”

“When you are working towards commercialization of a product, the goal is to be efficient, minimize costs and get your product onto store shelves quickly—Design for Manufacturability (DFM) works to do just this. With DFM you work out any potential issues before manufacturing planning which saves both time and resources.”

“When the time comes to manufacture your hardware product, having the right partner on your team makes all the difference. Speed, accuracy, reliability and open communication are all characteristics to look for when picking a contract manufacturer (CM). Building a supply chain from scratch is challenging and many hardware startups falter during this early-stage, however with the right information your startup doesn’t have to be one of them.”

“If you don’t manufacture a quality product, all you’ve got at the end is a bunch of expensive mistakes.”-Eliyahu M. Goldratt

Innovation and commercialization are similar yet vastly different. You can have an abundance of ideas, but having the structured process in place to bring them to fruition is key. The path to commercialization is littered with potholes and roadblocks, but you don’t have to navigate them alone.

Often the process of moving a product idea out of the “idea” stage is challenging, so many inventors tend to discard the idea and move on. However, with the right resources and structure in place, you can get your idea off the ground and headed towards commercialization.

“It’s not about ideas. It’s about making ideas happen.” – Scott Belsky, co-founder of Behance.

Below are a few items to consider when developing the support structure for your business.

Community Resources. Look around at your local community and see what resources are in place to help you develop your business idea. Depending on your idea you might be searching for a tech incubator, a business accelerator, mentoring, training programs or networking events. While many inventors dream of building a business in Silicon Valley, the truth is that your local community might be the best place for you to start.

Service Providers. In line with community resources, your local tech incubator or accelerator will be able to put you in touch with professionals in your community. For example, product development experts, programmers, lawyers, CPAs etc. Incubators and accelerators will have knowledge and experience working with these service providers, and be able to guide you toward the ones that meet your specific business needs.

Funding. Most startups need funding at one point. This assistance might come in the form of grants, venture capitalists, tax breaks or R&D funding. Research what type of funding makes the most sense for your business and your goals.

Intellectual Property. Patent research should not be overlooked at the very early stages of forming your business. Before you get going and commit yourself to developing a product, you want to be sure that someone else does not hold the rights to it. (Take a look at how Herbavore, a startup client of ours, approached the entire patent process.)

Often times inventors and entrepreneurs are viewed as people who lock themselves away to develop an idea, but the truth of the matter is, it takes help from a wide range of people to get an idea on the road to commercialization. Don’t be afraid to reach out and ask for help. If you need a certain skill set that you don’t possess, find someone who does—asking for help might just be the thing that sets your idea on the path to success.

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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

A patent for your invention is useful, in that it gives you exclusive rights to the idea/product (for twenty years), allows you to license the invention and provides a strong market position. However, to obtain a patent your invention must meet certain criteria. Here are a few important questions to ask yourself in determining whether your invention is patentable.

Did you invent it? A patent can only be applied for by the actual inventor or co-inventor. If you were not the inventor, but contributed financially, you will not be able to patent the product on your own. If the inventor was employed by another person or company to develop the invention, the patent will still be issued under the inventor’s name. However, ownership of the patent will be with the employer.

Is your invention useful? Under U.S. law the invention must be “useful” to be eligible for protection. To meet this requirement the product must provide some benefit and is capable of use. It is important to note that most inventions meet this criteria.

Is your invention “non-obvious”? If your product is already common knowledge in its field, then it would not meet this requirement. This determination is made by deciding whether the invention sought to be patented would have been obvious “to a person having ordinary skill in the art to which the claimed invention pertains”. Determination of whether a particular change or improvement is “obvious” is one of the most difficult determinations in patent law.

Does it fall under a patentable category? Patents are available for processes, machines, articles of manufacture, and improvements to any of those classes. If your idea is in regards to laws of nature, physical phenomena, abstract ideas or non-useful objects, it will not be eligible for a patent.

Has your invention been disclosed to the public? If so, your invention will not be patentable. This requirement states that your idea must be “new” and not discussed publicly prior to the date of the filing. If you invention has been made available for public use or disclosed in a prior patent application it will not be eligible for a patent.

Have additional questions regarding the patent process? We highly recommend a visit to the USPTO website. We are also able to help answer any questions you may have, please e-mail them to info@3d-innovations.com

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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

In our Case Study blog post last week, Transitioning From Idea To Manufacturable Product, we discussed the ways in which we helped a client secure a licensing agreement. For many inventors a licensing agreement is often a great option since it lets them develop a product, but then puts the expenses associated with commercialization on a more experienced manufacturer.

What is a licensing agreement?

With a licensing agreement, an inventor (the licensor) develops an invention and then protects that invention through a patent, copyright, trademark, or trade secret, and thus creates intellectual property (IP). The inventor—the owner of the intellectual property—then licenses the invention to a second party (the licensee) whose responsibility is to commercialize the invention. As compensation for allowing another party to use its intellectual property, the licensor will receive a royalty.

Licensing agreements are becoming more common than in the past and are open to more inventors. This has also increased the number of inventors approaching manufacturers and, thus, increased competition.

What are the benefits of a licensing agreement?

Below is a list of some of the main benefits of licensing your invention/IP.

The licensor (inventor) does not have to finance the commercialization process.

The licensor avoids the need to create and operate a company.

The innovation will most likely get to market faster because a larger, more experienced company is handling the commercialization.

The innovation may reach more markets if the licensee is a large, well-funded enterprise.

The licensor retains ownership of the intellectual property.

How do I evaluate a potential licensee?

When evaluating a potential licensee, you should focus on its ability to effectively commercialize your invention/IP. Often times that means considering companies that have a proven track record of marketing and selling products based on inventions similar to yours. Depending on the invention, the best way to commercialize it could also be to license it to a startup, a manufacturer, or a bunch of companies in separate territories.

Suggestions for securing a licensing agreement:

Assess the complexity of our product. Is there a way to get a working version developed without extensive costs? 3D printing/additive manufacturing is a frequently used method to get a functional prototype ready because of its speed and the reduced costs associated with the technology.

Identify manufacturers. Find out which manufacturers currently sell product lines to large retailers where you can see that your product would be a good fit.

Create a functional prototype. Create a functional prototype of your product and pitch retail buyers. The goal is to get a commitment before you actually launch. You can possibly even offer them a few months of launch exclusivity. The mock-up of your packaging is also critically important. Your product must look as retail ready as possible.

Setup a meeting with an IP attorney. The attorney will be able to go over the legal aspects of the licensing agreement with you and help come up with a plan that best suits your needs.

Approach the identified manufacturers. If you want to get the attention of a manufacturer, before you even talk about your product, pitch the prospect your new customer, growing sales or the commitment from a major buyer. You’ll get an appointment, and your product has a better chance of moving to the front of the line in the new product development funnel.

Have additional questions about licensing agreements? We would be happy to help answer them, please e-mail info@3d-innovations.com

Intellectual property (IP) is not exactly “fun or exciting” — however, it is the most important aspect of your startup and needs to be protected. Securing and protecting the intellectual property rights to your invention is key to successful commercialization.

Below we answer some of the common IP questions we hear from entrepreneurs.

When should I start thinking about protecting my startup’s IP?

Immediately after your startup is formed is the best time to get all the founders on the same page regarding IP. The most valuable asset of your startup is in fact its intellectual property; therefore it should be at the top of your ‘to-do’ list. IP is the heart and soul of your business and needs to be protected by patents, copyrights and/or trademarks — which ever makes the most sense for your business and invention. Without a proper IP strategy, you are leaving the door open for major complications down the road.

What type of IP protection is necessary for my business?

Patents, copyrights and trademarks are all forms of intellectual property. While all three types of IP are indeed essential for success, hardware-focused startups rely heavily on patents.

What exactly is a patent? A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office (USPTO). U.S. patent grants are effective only within the United States, U.S. territories, and U.S. possessions. There are three types of patents: utility, design and plant patents.

Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof;

Design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture; and

Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant.

Why should I even consider IP protection for my startup?

If you plan on moving towards commercialization with your product, you are going to want to have control over your startup’s IP. Patents can bolster competitive advantage and assist in the streamlining of the entire commercialization process. If your startup is planning on seeking outside funding from VCs, having all of the founders on the same page regarding IP protection is imperative.

While patents do not guarantee success, they do allow you to secure all rights and claims to your invention. Without patent protection, some inventions cannot be commercialized because both the inventor and investors understand that the product can easily be duplicated, leaving them with no recourse if their product is copied.

How do I file a patent for my invention?

There are a few necessary steps to take before you actually file a patent. First, a patent search will need to be conducted to make sure that the invention does not already exist. The USPTO makes it possible to conduct a preliminary patent search on your own; however, it is highly recommended that you consult with a licensed patent search firm to assist with the bulk of the research. These firms have vast experience researching and are extremely knowledgeable in the classification systems.

If you plan on filing a utility patent, you will next need to decide whether to file a provisional or non-provisional utility patent. In simple terms, a provisional application is a quick and inexpensive way to begin protecting an invention while you continue its development, conduct market testing and obtain funding. A provisional patent gives you exactly one year to file a non-provisional utility patent application and move forward in the patent process.

When it comes time to begin your patent search and subsequent patent filing, we highly recommend that you consult with a licensed patent attorney to review your patent options and decide what will be the most-beneficial for your specific invention.

Have additional questions regarding intellectual property? Send them our way at info@3d-innovations.com

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3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

Recently, patents, and the entire patent system, have been synonymous with reform. However, the truth remains that patents are a critical factor for sustainable success. Whether you are at the helm of a startup that plans on crowdfunding a product or a SME working on a new and innovative technology, securing and protecting your intellectual property (IP) rights to that invention is key to successful commercialization.

Patents, copyrights and trademarks are all forms of intellectual property. For the purpose of this piece, patents — particularly design and utility patents — will be the focus of the conversation. While all three types of IP are indeed essential for success, hardware-focused products rely heavily on patents. Before we delve into commercialization let’s quickly review what exactly a patent is.

Patent. A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office (USPTO). U.S. patent grants are effective only within the United States, U.S. territories, and U.S. possessions. There are three types of patents: utility, design and plant patents.

Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof;

Design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture; and

Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant.

Researching Patent Options

There is nothing more time consuming and resource draining than filing a patent only to later realize that there is already a patent for a similar invention. To avoid this scenario completely, conducting a patent search is in order. Patents hinge on the fact that they are one-of-a-kind; therefore, taking the time to research current patents and confirm that an invention does not already exist, should be the very first step. The USPTO makes it possible to conduct a preliminary patent search on your own; however, it is highly recommended that you consult with a licensed patent search firm to assist with the bulk of the research. These firms have vast experience researching and are extremely knowledgeable in the classification systems.

Once the research portion has been conducted, the next common early-stage question that resonates in the mind of entrepreneurs is, Do I need to patent my design? Having a patent for your product design allows you to claim all rights to the product. Often a design patent is overlooked and underutilized since this type of patent focuses more on the exterior design, features and overall aesthetics of the product and less on functionality.

Design patents extend to what is exactly shown in the drawings, nothing more. Having high-quality professional line drawings by a CAD designer is extremely advantageous. With a design patent, you are able to use the coveted phrases, patent pending and patent issued on all marketing material, and have confidence that your invention is protected for the next fourteen years. A design patent coupled with a utility patent provides overlapping protection for both the inner workings and exterior design of your product, and is a powerful tool in your IP arsenal.

In contrast to design patents, utility patents focus solely on the inner workings of your invention, its unique functions and overall usefulness. An invention is deemed useful if it provides an identifiable benefit and is capable of use. People often refer to utility patents as “patents for invention”. According to the United States Patent and Trademark Office, ninety-percent of the patent documents issued by the USPTO in recent years have been utility patents. With a utility patent your invention will be protected for the next twenty years.

Design and utility patents each have a distinct form of protection and are often used congruently. It is best to consult with a licensed patent attorney to review the options and see what type of protection will be the most beneficial and cost-effective.

Filing for Provisional v. Non-Provisional Utility Patents

So, you have done your research and are confident that your new product has not been previously patented, now is the time to decide if you need to file for a provisional or non-provisional utility patent.

In simple terms, a provisional application is a quick and inexpensive way to begin protecting an invention while you continue its development, conduct market testing and obtain funding. A provisional patent gives you exactly one year to file a non-provisional utility patent application and move forward in the patent process. If you do not file within the one year time period, you have in essence “abandoned” the utility patent application and no longer have claim to the invention. Filing a non-provisional patent application establishes a firm filing date and starts the official examination process with the USPTO.

It is important to understand that although you file a patent application, there is no guarantee it will be issued. Examiners will review your application and look for prior patents that may conflict with what you are claiming. However, once you are granted a patent, you then have all rights to the invention and can enforce any infringement upon it.

Moving Towards Commercialization

While patents cannot provide a guarantee that your product will be successful, patents do allow you to secure all rights and claims to your invention and provide comprehensive IP protection. Patents can bolster competitive advantage and assist in the streamlining of the entire commercialization process. Without patent protection, some inventions cannot be commercialized at all because both the inventor and investors understand that the product can easily be duplicated, leaving them with no recourse if their product is copied. Taking the time to develop a high quality patent means much more in the marketplace and can ultimately determine the success or failure of a product.